THANK YOU IN ADVANCE.

On 1 August 2020 Apple Ltd issues 50,000 shares at $1.00. The terms of the issue requiring the shareholders to pay $0.60 immediately with the balance due in one years time. In one years time, the company makes a call on the shareholders for the remaining $0.40 per share, with payments to be made by 31 August 2021. Holders of 49,000 shares pay the required call by 31 August 2021. On 5 September, the company forfeits the shares on which the call was not paid.

Required

1.Prepare the journal entries required to record the above transactions (ignore narrations).

2. The forfeited shares were reissued on 5 November 2021 as fully paid to $1.00 on payment of $0.80 per share, with the forfeited shares account being used to fund the difference as well as any costs of reissue. Assuming all the shares were reissued, incurring costs of $150, and any balance of the forfeited shares account being returned to the former shareholders,

Prepare the necessary journal entries to reflect these events (ignore narrations).

3. If a company used a direct private placement for issuing shares rather than a public placement, briefly explain how this would change the accounting for the share issue.